European refiners back in the money?

With another decline in crude oil prices, especially at the prompt, and product prices remaining supported, European refiners are back closer to their average profitability levels. Indeed, ICE Brent crude futures declined further, to reach 73.1$/b for September delivery. The time structure also weakened, at 67 cents. Yet, product prices, especially light ends such as naphtha and gasoline, remained supported by European demand and exports. As a result, margins are increasingly within the 5y average range, despite diesel cracks remaining below historical norms.